A Competitive Firm's Production Function Is F(x₁, X₂)= 12x^1/2₁

question 35

Multiple Choice

A competitive firm's production function is f(x₁, x₂) = 12x^1/2₁ + 4x^1/2₂.The price of factor 1 is $1 and the price of factor 2 is $2.The price of output is $4.What is the profit-maximizing quantity of output?

• A)304
• B)608
• C)300
• D)612
• E)292

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Definitions:

Exercise Prices

The price at which the holder of an option contract can buy (call) or sell (put) the underlying asset.

Black-Scholes Option-Pricing

A mathematical model used to determine the theoretical price of European-style options, factoring in time, its volatility, and other variables.

Expected Return

The weighted average of all possible returns for an investment, considering the probabilities of each outcome.

Strike Prices

The specified price at which an option contract can be exercised, determining the buying or selling price of the underlying asset.